individual-social intersection, leaders also have a set of competencies or skills such as setting the strategic agenda and building relationships. Moving to the intersection of organizational and technical, are business capabilities. In short, they are the technical things or what the firm must know how to do to execute strategy. For example, a financial service firm must know how to manage risk and design innovative products. Finally, we have organization capabilities such as talent management, collaboration, and accountability. They integrate all the other parts of the firm and bring it together. When leaders have mastered certain competencies, organization capabilities become visible. For example, when leaders master "turning vision in to action" and "aligning the organization," the organization as a whole shows more accountability. History of capability modeling in business Capability management's earlier ancestors include the value chain, also known as value chain analysis, first described and popularized by Michael Porter. Core competencies (also called core capabilities) are what give a company one or more competitive advantages in creating and delivering value to its customers in its chosen field, a cluster of extraordinary abilities or the excellence that a firm acquires from its founders, and which cannot be easily imitated. Lee Perry, Randall Stott and Norm Smallwood added to the capabilities body of work the concepts of strategic options based on customer value proposition and business focus and types of work which characterized work as either: Unit of competitive advantage (UCA) – the work and capabilities that create distinctiveness for the business in the marketplace Value-added support work – the work and capabilities that facilitate the UCA Essential support work – the work that doesn't support UCA or facilitate it but must be done to operate the business Building on earlier themes, the concept of dynamic capabilities was introduced in 2000. The basic assumption of the dynamic capabilities framework is that in fast changing markets, firms need to respond quickly and innovatively. Around the same time, Richard Lynch, John Diezemann and James Dowling extended the concepts above in The Capable Company: Building the capabilities that make strategy work. Key additions to the body of work were tools to translate strategic shifts to new sets of capabilities required whether these were core competencies or not. Building on the types of work ideas, the authors added performance target setting based on the capability value contribution. When compared to actual performance, the method outlined